Record Powerball jackpot

With tonight’s Powerball jackpot at a record $500 million, people didn’t deliberate too long before buying a ticket, or a string of them. They should put a lot more thought into what they’d do if they win, say experts in financial matters.

With tonight’s Powerball jackpot at a record $500 million, people didn’t deliberate too long before buying a ticket, or a string of them. They should put a lot more thought into what they’d do if they win, say experts in financial matters.

Michael E. Spears, CRPC, a financial adviser with Ameriprise Financial Services of Kinston, advised Powerball winners should take three to six months to “reassess the new reality” of their situation.

“If it were me personally, I would want to keep a tab on how much I have changed and how much my lifestyle has changed, and to also understand who my true friends were — because you’ll gain a lot of friends after winning that much money,” Spears said.

He suggested that anyone who receives a sudden financial windfall, such as a lottery prize or an inheritance, should “seek trusted counsel” from an attorney, certified public accountant or financial advisor.

Spears said winners should work to build a cash reserve, pay down credit card debt and put money toward retirement or education funds.

He also urged them to watch out for scams, and heed the saying: “If it’s too good to be true, it probably is.”

Chris Henderson, an attorney with White & Allen of Kinston, who specializes in estate planning, also encouraged winners to “sit tight,” and assemble a team of financial and legal advisers.

“It’s human nature when you get a windfall, and if it’s that big, you may be apt to spend or splurge,” Henderson said.

Big plans

A lot of people around Kinston already know what they’ll do if they hit the jackpot.

“(I would) buy me a new house because I’ve always wanted my own home,” said Melba Roberson of Kinston. “I would also help someone that’s in need if I hit the Powerball.”

Debbie Rouse of Kinston had a similar idea.

“I’d make a whole lot of people happy,” she said as she purchased a ticket from the Kangaroo gas station on Plaza Boulevard.

Cornell Sutton of Kinston said he’d buy a house but also “invest some of the money.”

Susan Singleton of Seven Springs also said she’d invest, but in paying off some debt.

“I’ll pay off everything my mother owes and everything my brother owes,” she said, laughing. “I’d give some to a charity that I want to give to and have fun with the rest.”

Page 2 of 2 - Bushnell said winners have 180 days from the time of the drawing to claim their prizes. He explained that time gives winners the ability to get their affairs in order and consult with a lawyer or financial adviser.

Once winners claim the jackpot, Bushnell said Lottery officials advise them “to have the one press conference, share the story of what it’s like to win the jackpot and then take a nice long vacation and let everyone move on to the next big story.”

If they’re also tempted to quit their jobs, Henderson advises against that

“If you (usually) get up at 6 a.m. and go to work, get up at 6 a.m. the next day and go to work,” he said.

David Anderson can be reached at 252-559-1077 or David.Anderson@Kinston.com. Follow him on Twitter at DavidFreePress. Reach Jessika Morgan at 252-559-1078 or Jessika.Morgan@Kinston.com. Follow her on Twitter at JessikaMorgan.

BREAKOUT

How much: Jackpot of approximately $500 million. Winners have the option of taking a lump sum payment, or receiving their prize money in annual annuity payments over 29 years. A single winner choosing the cash option would take home more than $327 million before taxes. The Lottery withholds 25 percent of the winnings for federal income tax and 7 percent for state income tax.

How many: Residents of 42 U.S. states — including North Carolina — Washington, D.C., and the U.S. Virgin Islands play Powerball. The odds of selecting the right six numbers and winning the jackpot are one in 175 million, according to the Powerball website.

How soon:The drawing will air live at 10:59 p.m.today on WITN-TV, and ticket purchases end at 9:59 p.m.